HOMEBUYER ANSWERS

How Much Money Do I Need to Buy a House?

Plan for more than the down payment. A homebuyer budget can include the down payment, closing costs, prepaid items, inspections, moving expenses and reserves.

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Start with the down payment

The amount required depends on the loan program, property and your individual qualifications. Some qualified buyers may have access to low-down-payment options, but a smaller down payment can affect the monthly payment and mortgage insurance.

Add closing costs

Closing costs can include lender, title, settlement, appraisal and other transaction charges. The exact mix varies by transaction and location, so use a personalized estimate rather than a fixed percentage.

Remember prepaid expenses

Taxes, homeowners insurance and interest may require money at or before closing. These are different from lender closing costs but still affect the cash you need.

Keep money for inspections and moving

Home inspections, moving expenses, repairs and furnishings are outside the mortgage itself. Keeping a separate cushion can help you avoid using every available dollar at closing.

Ask about assistance and seller contributions

Qualified buyers may have access to down-payment or closing-cost assistance, and some transactions may permit seller contributions subject to program rules. Availability is not guaranteed.

Get a cash-to-close estimate early

A mortgage review can help turn a rough savings goal into a more useful estimate based on your price range, program and location.

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Related Homebuyer Resources

Down Payment Assistance →Closing Costs Guide →Mortgage Calculator →All Homebuyer Questions →